Subject: CRA Electronic mailing list service Potential investors reminded to exercise caution with respect to certain donation arrangements As the calendar year end approaches, investors may see an increasing number of advertisements for tax shelter donation arrangements. The Canada Revenue Agency (CRA) reminds investors that the proposed legislative changes announced by the Department of Finance on December 5, 2003, to limit the tax benefits of charitable donations made under tax shelter and other arrangements, are in effect. Investors should be aware of the risks associated with participating in certain tax shelter donation arrangements, including gifting trust arrangements, leveraged cash [More]
Subject: CRA Electronic mailing list service Taxpayer Alert Owners of self-directed RRSPs should use caution with tax-free withdrawal schemes Taxpayers should use caution before taking part in any scheme that promises a tax-free withdrawal of Registered Retirement Savings Plan (RRSP) funds. Some promoters of financial schemes promise RRSP owners that they can make tax-free withdrawals from their RRSPs. Typically, the arrangement involves using an individual’s self-directed RRSP to purchase the shares of a private company or interest in mortgages (usually at highly inflated values). The funds used to make the purchase are then loaned back to the owner of [More]